The novel coronavirus / COVID-19 pandemic continues to cause mass disruption across the globe, with the extent of the damage yet to be understood. It has led to businesses examining their business models, cutting expenses and re-negotiating contractual relationships. It is hoped that, in this time, people and entities try to work together for general survival, rather than focussing on black letter law. However it is important to know how your contracts work, and your potential options. It is also important to prepare, commercially and legally, for the next black swan event.
This article examines the implications of the novel coronavirus for Australian businesses at particular risk due to high debt, and the free movement of consumers and goods. Steps can be taken to minimise damage to your business, including seeking leniency from creditors with a view to avoiding voluntary administration or liquidation.
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